& nbsp
Author: Wajahat Gul Memon, head of corporate governance, Dubai commercial bank
Corporate governance is a framework for rules, practices and processes by which an organization is directed and controlled. It represents the relations between the shareholders of an organization, the board of directors, management and other stakeholders, guaranteeing transparency and responsibility in decision -making. This framework strengthens trust and integrity, which are essential to improve the performance and profitability of companies. By joining high governance standards, organizations can align their strategic objectives with the interests of stakeholders, thus establishing a solid basis for lasting success.
From surveillance to strategy
Previously, serving as a member of the board of directors was often considered a distinguished role and recognition of a successful professional career. The composition of the board of directors was not a major subject of discussion, and it was common for individuals to hold several members of the board of directors, sometimes serving as members of the board of directors and presidents for many organizations, sometimes exceeding 10 organizations. This practice was motivated by the conviction that experienced professionals could offer advice and useful links to many organizations at the same time.
Little by little, the advice began to operate as supervisory organizations, focusing on governance and compliance and mainly used as a required monitoring function. They met regulatory requirements rather than actively contributing to the strategic orientation of the organization.
Today, the role of the board of directors has evolved considerably. The boards of directors now contribute to the definition of the future and the strategy of organizations. The qualifications of the members of the board of directors aim to facilitate significant contributions. The composition of the board of directors is now closely examined to ensure that it includes the skills and expertise necessary for long -term success, effective compliance and governance monitoring and an appropriate delegation of management operations. This change reflects a prospective approach which prioritizes the strategic and sustainable growth of organizations.
Boards of directors should help shape the vision and strategy of an organization by guiding management, aligning on long -term objectives and taking up new challenges and opportunities. This obliges the members of the Council to have a wide range of skills, such as strategic thinking, financial knowledge, industry expertise and the ability to understand complex regulations and market trends.
Organizations are now looking for members who offer new perspectives and specialized knowledge to manage various problems. Diversified advice is better equipped to make intelligent decisions, manage risks and identify opportunities, offer useful monitoring and strategic orientation.
Overall, the evolution of the role of the board of directors reflects a broader change towards more dynamic and proactive corporate governance. Advice no longer meets regulatory requirements. They lead to the creation of long -term value and ensure that the organization remains resilient in the face of the evolution of market conditions.
This transformation highlights the importance of having members of the qualified, diverse and committed board of directors who can navigate in modern affairs complexities and contribute to the success of the organization.
What makes a board really effective?
Effective advice is characterized by key features that stimulate good governance and the achievement of strategic objectives. It starts with a healthy balance between executive directors, non -executive and independent, who together offer the right mixture of skills, knowledge and experience to allow better decision -making and better governance. Each member of the board of directors must clearly understand their roles and responsibilities, including their fiduciary tasks. Continuous professional development is essential to keep administrators up to date with industry trends and best practices. Independent surveillance is critical and must be supported by regular assessments of the independence of each administrator to ensure objectivity.
Regular performance assessments of the Board of Directors, its committees and individual administrators help to identify the areas to improve and strengthen alignment with governance objectives. In the end, effective advice is made up of good people, equipped with timely and precise information, who use their time wisely, lead for the purpose, collaborate well and maintain solid and constructive relationships with management.
Advanced practices to water
Corporate governance with the United Arab Emirates (water) has been transformed significantly in recent years, motivated by the evolution of regulations and the commitment of water to transparency, responsibility and ethical conduct. As an experienced practitioner in the field of corporate governance, I had the privilege of seeing dynamic changes and proactive measures implemented to raise corporate governance practices.
The boards of directors now contribute to the definition of the future and the strategy of organizations
These initiatives have assured that organizations operate with improved transparency and responsibility, aligning on local and international standards. The adoption of international standards has attracted foreign investments, helping to stimulate economic growth. Proactive measures such as strict declaration requirements, regular audits and the creation of dedicated governance committees have strengthened corporate governance in various sectors.
These initiatives have also created a culture of responsibility, where organizations focus on long -term sustainability, risk management, stakeholders’ commitment and the creation of long -term value for stakeholders. Overall, the dedication of water to a transparent, responsible and ethically healthy commercial environment positioned it as a leader in corporate governance, promoting sustainable growth and attracting investments.
Excellence in CBD governance
The Dubai Commercial Bank (CBD) undertakes to improve its governance framework to ensure unrivaled transparency, responsibility and ethical conduct in all operations. This firm dedication ensures our integrity while stimulating long -term lasting value for our stakeholders. Our governance practices are continuously evolving to align with the latest regulations and trends, ensuring that we remain at the forefront of corporate governance excellence.
This objective has motivated our success in promoting transparency, responsibility and ethical conduct in all operations, strengthening our position as a regional leader in governance. The CBD board of directors collectively has the skills, knowledge and experience required to govern and effectively direct the bank.
In addition, the board of directors actively improves the expertise of its members thanks to an in progress professional development. This approach allows the creation of a set of diversified and well -balanced skills, fills the gaps and prepares members to navigate in a dynamic and evolutionary environment.
The bank created five board of directors to ensure effective delegation and surveillance in the main areas of its operations. These include specialized committees focused on strategy, business growth, compliance and risk management, as well as the composition and succession of the board of directors. This structure allows targeted attention to critical functions, ensuring that specialized tasks are treated effectively and with appropriate expertise. It reflects the principles of modern governance which prioritize strategic leadership, various capacities and proactive management of emerging challenges and opportunities.
While corporate governance continues to evolve, the CBD remains firmly attached to the highest standards of transparency, responsibility and ethical leadership. The bank encourages a strong culture of governance, reinforced by continuous development, rigorous surveillance and a prospective board of directors. As such, the bank is well placed to sail in emerging challenges, stimulate strategic growth and offer long -term value to its stakeholders. These efforts focused on the objective underlines bank leaders in corporate governance in the region.